18 Proven Ways for Business Owners to Reduce Stress and Stay Focused
Running a business can be incredibly rewarding, but it comes with challenges that often lead to stress. While some stress is normal, letting it build up can harm your health, decision-making, and happiness. Let’s explore the common causes of stress for business owners and practical ways to manage it.
What Is Stress?
Stress is your body’s response to pressure—mental, emotional, or physical. While short-term stress can help you tackle challenges, ongoing stress may lead to burnout, health problems, and lower productivity. Recognising the signs of stress early is the first step to tackling it effectively.
Signs of Stress Include:
- Poor sleep or appetite changes
- Feeling irritable or panicked
- Struggling to concentrate
- Muscle tension or headaches
Common Causes of Stress for Business Owners
Here are some of the top stress triggers:
- Managing staff: Keeping your team happy and productive.
- Admin overload: Endless tasks like taxes and compliance.
- Cash flow worries: Balancing overheads and expenses.
- Time pressure: Long hours and looming deadlines.
- Multitasking: Wearing too many hats at once.
- Lack of knowledge: Not knowing what you don’t know makes decisions harder.
These challenges can feel overwhelming, but there are strategies to take control.
18 Proven Ways for Business Owners to Reduce Stress and Stay Focused
Managing stress effectively is key to maintaining focus and well-being. Here are practical tips:
1. Do Your Bookkeeping Little and Often
Tackling bookkeeping weekly avoids overwhelming backlogs. Reconciling 20 transactions weekly is far easier than dealing with 260 after three months.
Tip: Set a weekly slot for bookkeeping and use tools like Dext, Xero or QuickBooks to automate data entry.
2. Set Aside Money for Tax Payments
Avoid tax bill surprises by saving throughout the year. Open a separate savings account for taxes.
Guidelines:
- Self-employed: Save 20%-45% of profits.
- Limited company: Save 20%-30% for taxes.
- VAT: Save 20% of sales minus VAT on expenses.
Tip: Use an online tax calculator to estimate liabilities and adjust your savings accordingly.
Hint: Treat tax savings like a fixed monthly expense to build discipline.
3. Know Your Deadlines
Missing deadlines leads to penalties and unnecessary stress. Mark tax, payroll, and VAT deadlines in your calendar.
Hint: Consider creating a large whiteboard with key dates for the whole team to see.
4. Delegate Tasks
You don’t need to be a superhero. Delegate routine or time-consuming tasks to focus on strategic priorities.
Hint: If you don’t have a team, consider outsourcing or hiring freelancers for specific roles.
5. Offer Early Payment Discounts
Late payments hurt cash flow. Incentivise early payments with small discounts.
Example: Offer a 5% discount for annual payments instead of monthly instalments.
6. Build a Cash Reserve
An emergency fund provides a safety net for unexpected expenses.
Tip: Start with one month’s expenses and build up to three to six months.
7. Celebrate Small Wins
Recognising achievements keeps morale high and stress low.
Hint: Share successes with your team to foster a positive environment.
8. Aim for Progress, Not Perfection
Overthinking causes paralysis. Focus on consistent improvement.
Tip: Break large goals into smaller, manageable tasks.
9. Keep Receipts and Records for Seven Years
You don’t need to keep physical paperwork as long as you have digital copies that are securely backed up. HMRC accepts digital records, so using software like Xero or QuickBooks is a great way to stay compliant.
Hint: These platforms include cloud services in their monthly subscriptions, meaning that once your receipts are uploaded, they’re stored securely. This eliminates the need for manual backups or bulky filing cabinets.
10. Build a Strong Team
Surround yourself with competent, reliable professionals who complement your skills.
11. Use HMRC’s Direct Debit System
Automate tax payments to avoid missed deadlines.
Hint: Regularly review payment schedules to ensure they align with your cash flow.
Additional Information: Can I Pay HMRC by Direct Debit for PAYE, VAT, Corporation tax and CIS? | Blue Rocket
12. Disengage from Bad Customers
Toxic clients drain resources. Politely let go of customers who cause more trouble than they’re worth.
13. Have Regular Meetings with Your Accountant
Quarterly check-ins keep finances organised and allow for proactive planning.
Tip: Use meetings to review taxes, profitability, and upcoming expenses.
Additional Information: What to Expect from a First Meeting with Your Accountant | Blue Rocket
14. Attend Business Social Events
Networking can help you gain new perspectives and unwind.
Additional Information: The Benefits of Business Networking: A Guide for Kent Companies | Blue Rocket
15. Outsource Tasks You’re Not Good At
Free up time by delegating specialised tasks to professionals.
16. Submit Accounts Early
Avoid last-minute stress by giving your accountant adequate time to prepare filings.
Tip: Set an internal deadline for preparing and submitting documents.
Hint: Keep a checklist of required information to simplify the process.
17. Remind Yourself Why You Started
Reconnect with your original goals to stay motivated.
Hint: Keep a personal note or picture related to your goals on your desk for inspiration.
18. Know You Don’t Need to Be a Tax Expert
Rely on professionals to handle complex areas like taxes.
Which of these resonates most with your experience as a business owner?
Don’t Forget to Ask for Help
One of the easiest ways to reduce stress is to seek support. Whether it’s guidance from an accountant, advice from a peer, or professional mental health resources, asking for help is a sign of strength, not weakness.
At Blue Rocket Accounting, we’re here to help you take some of the pressure off by simplifying your finances so you can focus on what really matters—growing your business.
Read More About Taxes
Check out these helpful blogs to learn more:
- The 'Easy As' Guide to Setting up Your Company | Blue Rocket
- 10 Reasons to Change your Accountant | Blue Rocket
- What to Expect from a First Meeting with Your Accountant | Blue Rocket
Final Thoughts
Stress management for business owners isn’t just about mindfulness—it’s about putting financial strategies in place, like effective tax planning and bookkeeping support. By prioritising your well-being, setting boundaries, and seeking support when needed, you’ll not only reduce stress but also build a stronger, more sustainable business.
Looking for help managing your business finances or reducing stress? Get in touch with us today. It’s not rocket science—it’s just great accounting.
